Ziff Davis Reports Fourth Quarter and Full Year 2024 Financial Results and Provides 2025 Guidance
Ziff Davis (NASDAQ: ZD) reported its unaudited financial results for Q4 and the full year ending December 31, 2024. Q4 2024 revenues rose by 5.9% to $412.8 million from $389.9 million in Q4 2023. However, income from operations decreased to $78.5 million from $80.7 million in the same period. Net income increased by 1.0% to $64.1 million, and net income per diluted share rose to $1.43 from $1.29.
Adjusted EBITDA for Q4 increased by 2.5% to $171.8 million, while adjusted net income increased by 3.0% to $110.2 million. Adjusted diluted EPS for Q4 rose by 10.7% to $2.58. Net cash from operating activities was $158.2 million, and free cash flow was $131.1 million. Ziff Davis ended Q4 with $664.1 million in cash and investments.
For the full year 2024, revenues increased by 2.8% to $1.40 billion. Income from operations decreased to $113.6 million, impacted by an $85.3 million goodwill impairment. Net income surged by 51.9% to $63.0 million, and net income per diluted share increased to $1.42. Adjusted EBITDA for the year rose by 2.3% to $493.5 million, and adjusted net income increased by 2.5% to $294.5 million. Adjusted diluted EPS for 2024 was $6.62, up 6.9%. Net cash from operating activities was $390.3 million, and free cash flow was $283.7 million. The company spent $225.4 million on acquisitions and $185.2 million on share repurchases in 2024.
- Q4 2024 revenues increased by 5.9% to $412.8 million.
- Net income for Q4 2024 increased by 1.0% to $64.1 million.
- Adjusted diluted EPS for Q4 2024 rose by 10.7% to $2.58.
- Free cash flow for Q4 2024 increased by 99% to $131.1 million.
- Full year 2024 net income surged by 51.9% to $63.0 million.
- Adjusted diluted EPS for the full year 2024 increased by 6.9% to $6.62.
- Income from operations for Q4 2024 decreased to $78.5 million.
- Income from operations for the full year 2024 decreased to $113.6 million.
- Goodwill impairment of $85.3 million recognized in 2024.
Insights
Ziff Davis's Q4 and full-year 2024 results reveal a company at a strategic turning point, with multiple indicators suggesting a strengthening financial position after a period of transition. The 5.9% revenue growth to
The 10.7% increase in Q4 adjusted EPS to
What truly stands out is the dramatic improvement in free cash flow generation -
The
The company's segment realignment into five distinct reporting units (Technology & Shopping, Gaming & Entertainment, Health & Wellness, Connectivity, and Cybersecurity & Martech) represents more than just an accounting change. This restructuring should provide investors with clearer visibility into performance drivers across Ziff Davis's diverse portfolio, potentially unlocking more accurate valuation metrics for each business segment.
Capital allocation decisions reveal a balanced approach, with
Looking ahead, investors should focus on whether the accelerating Q4 revenue growth represents a sustainable trend or temporary seasonal strength. The significant free cash flow improvement suggests potential for increased shareholder returns or more aggressive M&A activity in 2025, particularly if the company can maintain its operational efficiency gains.
“We believe 2024 marked an inflection point for the Company as it returned to revenue, adjusted diluted EPS, and free cash flow growth,” said Vivek Shah, Chief Executive Officer of Ziff Davis. “We are also excited to introduce a new segment reporting structure that we believe will aid investors in gaining a better understanding and appreciation of our business.”
FOURTH QUARTER 2024 RESULTS
-
Q4 2024 quarterly revenues increased
5.9% to$412.8 million $389.9 million
-
Income from operations decreased to
$78.5 million $80.7 million
-
Net income (1) increased
1.0% to$64.1 million $63.4 million
-
Net income per diluted share (1) increased to
$1.43 $1.29
-
Adjusted EBITDA (2) for the quarter increased
2.5% to$171.8 million $167.6 million
-
Adjusted net income (2) increased
3.0% to$110.2 million $107.0 million
-
Adjusted net income per diluted share (1)(2) (or “Adjusted diluted EPS”) for the quarter increased
10.7% to$2.58 $2.33
-
Net cash provided by operating activities was
$158.2 million $92.1 million $131.1 million $65.9 million
-
Ziff Davis ended the quarter with approximately
$664.1 million $6.4 million $1.2 million
FULL YEAR 2024 RESULTS
-
2024 yearly revenues increased
2.8% to$1.40 billion $1.36 billion
-
Income from operations decreased to
$113.6 million $132.6 million $85.3 million $56.9 million
-
Net income (1) increased
51.9% to$63.0 million $41.5 million
-
Net income per diluted share (1) increased to
$1.42 $0.89
-
Adjusted EBITDA (2) for the year increased
2.3% to$493.5 million $482.3 million
-
Adjusted net income (2) for the year increased
2.5% to$294.5 million $287.4 million
-
Adjusted diluted EPS (1)(2) for the year increased
6.9% to$6.62 $6.19
-
Net cash provided by operating activities was
$390.3 million $320.0 million $283.7 million $211.2 million
-
Ziff Davis deployed approximately
$225.4 million $185.2 million
The following table reflects results for the three months and year ended December 31, 2024 and 2023, respectively (in millions, except per share amounts).
(Unaudited) |
Three months ended
|
% Change |
Years ended
|
% Change |
||
2024 |
2023 |
2024 |
2023 |
|||
Revenues |
|
|
|
|
|
|
Technology & Shopping |
|
|
|
|
|
|
Gaming & Entertainment |
|
|
|
|
|
|
Health & Wellness |
|
|
(0.7)% |
|
|
|
Connectivity |
|
|
(4.9)% |
|
|
|
Cybersecurity and Martech |
|
|
(4.0)% |
|
|
(2.6)% |
Total revenues (3) |
|
|
|
|
|
|
Income from operations |
|
|
(2.7)% |
|
|
(14.3)% |
Operating income margin |
|
|
(1.7)% |
|
|
(1.6)% |
Net income (1) |
|
|
|
|
|
|
Net income per diluted share (1) |
|
|
|
|
|
|
Adjusted EBITDA (2) |
|
|
|
|
|
|
Adjusted EBITDA margin (2) |
|
|
(1.4)% |
|
|
(0.2)% |
Adjusted net income (1)(2) |
|
|
|
|
|
|
Adjusted diluted EPS (1)(2) |
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
Free cash flow (2) |
|
|
|
|
|
|
Notes: |
||
(1) |
|
GAAP effective tax rates were approximately |
(2) |
|
For definitions of non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures refer to section “Non-GAAP Financial Measures” further in this release. |
(3) |
|
The revenues associated with each of the businesses may not foot precisely since each is presented independently. |
ZIFF DAVIS GUIDANCE
The Company’s full year 2025 outlook is as follows (in millions, except per share data):
|
2024 Actual |
|
2025 Range of Estimates |
|
Growth |
|||||||||
|
(unaudited) |
|
Low |
|
High |
|
Low |
|
High |
|||||
Revenue |
$ |
1,402 |
|
$ |
1,442 |
|
$ |
1,502 |
|
2.9 |
% |
|
7.2 |
% |
Adjusted EBITDA |
$ |
494 |
|
$ |
505 |
|
$ |
542 |
|
2.3 |
% |
|
9.8 |
% |
Adjusted diluted EPS* |
$ |
6.62 |
|
$ |
6.64 |
|
$ |
7.28 |
|
0.3 |
% |
|
10.0 |
% |
| _______________________ | |
* |
It is anticipated that the Adjusted effective tax rate for 2025 will be between |
A reconciliation of forward-looking Adjusted EBITDA and Adjusted diluted EPS to the corresponding GAAP financial measures is not available without unreasonable effort due primarily to variability and difficulty in making accurate forecasts and projections of certain non-operating items such as (Gain) loss on investments, net, Other (income) loss, net, and other unanticipated items that may arise in the future.
SEGMENT REALIGNMENT
Following changes to our internal reporting structure, the Company concluded that it has five operating segments, which are now presented as the following five reportable segments: 1) Technology & Shopping, 2) Gaming & Entertainment, 3) Health & Wellness, 4) Connectivity, and 5) Cybersecurity & Martech. Prior period segment information is presented on a comparable basis to conform to this new segment presentation with no effect on previously reported consolidated results.
EARNINGS CONFERENCE CALL AND AUDIO WEBCAST
Ziff Davis will host a live audio webcast and conference call discussing its fourth quarter and year-end 2024 financial results on Tuesday, February 25, 2025, at 8:30AM ET. The live webcast and call will be accessible by phone by dialing (844) 985-2014 or via www.ziffdavis.com. Following the event, the audio recording and presentation materials will be archived and made available at www.ziffdavis.com.
ABOUT ZIFF DAVIS
Ziff Davis, Inc. (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, health and wellness, connectivity, cybersecurity, and martech. For more information, visit www.ziffdavis.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those contained in Vivek Shah’s quote, the “Ziff Davis Guidance” section regarding the Company’s expected fiscal 2025 financial performance, and our discussion of net cash provided by operating activities and free cash flow. These forward-looking statements are based on management’s current expectations or beliefs and are subject to numerous assumptions, risks, and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company’s ability to grow advertising, licensing, and subscription revenues, profitability, and cash flows, particularly in light of an uncertain
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED, IN THOUSANDS) |
|||||||
|
December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
505,880 |
|
|
$ |
737,612 |
|
Short-term investments |
|
— |
|
|
|
27,109 |
|
Accounts receivable, net of allowances of |
|
660,223 |
|
|
|
337,703 |
|
Prepaid expenses and other current assets |
|
105,966 |
|
|
|
88,570 |
|
Total current assets |
|
1,272,069 |
|
|
|
1,190,994 |
|
Long-term investments |
|
158,187 |
|
|
|
140,906 |
|
Property and equipment, net of accumulated depreciation of |
|
197,216 |
|
|
|
188,169 |
|
Intangible assets, net |
|
425,749 |
|
|
|
325,406 |
|
Goodwill |
|
1,580,258 |
|
|
|
1,546,065 |
|
Deferred income taxes |
|
7,487 |
|
|
|
8,731 |
|
Other assets |
|
63,368 |
|
|
|
70,751 |
|
TOTAL ASSETS |
$ |
3,704,334 |
|
|
$ |
3,471,022 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
670,769 |
|
|
$ |
216,936 |
|
Income taxes payable, current |
|
19,715 |
|
|
|
14,458 |
|
Deferred revenue, current |
|
199,664 |
|
|
|
184,549 |
|
Other current liabilities |
|
9,499 |
|
|
|
15,890 |
|
Total current liabilities |
|
899,647 |
|
|
|
431,833 |
|
Long-term debt |
|
864,282 |
|
|
|
1,001,312 |
|
Deferred revenue, noncurrent |
|
5,504 |
|
|
|
8,169 |
|
Income taxes payable, noncurrent |
|
— |
|
|
|
8,486 |
|
Liability for uncertain tax positions |
|
30,296 |
|
|
|
36,055 |
|
Deferred income taxes |
|
46,018 |
|
|
|
45,503 |
|
Other noncurrent liabilities |
|
47,705 |
|
|
|
46,666 |
|
TOTAL LIABILITIES |
|
1,893,452 |
|
|
|
1,578,024 |
|
|
|
|
|
||||
Common stock |
|
428 |
|
|
|
461 |
|
Additional paid-in capital |
|
491,891 |
|
|
|
472,201 |
|
Retained earnings |
|
1,401,034 |
|
|
|
1,491,956 |
|
Accumulated other comprehensive loss |
|
(82,471 |
) |
|
|
(71,620 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
1,810,882 |
|
|
|
1,892,998 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
3,704,334 |
|
|
$ |
3,471,022 |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) |
|||||||||||||||
|
Three months ended
|
|
Years ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Total revenues |
$ |
412,823 |
|
|
$ |
389,885 |
|
|
$ |
1,401,688 |
|
|
$ |
1,364,028 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Direct costs |
|
53,242 |
|
|
|
45,070 |
|
|
|
200,323 |
|
|
|
185,650 |
|
Sales and marketing |
|
150,510 |
|
|
|
126,449 |
|
|
|
519,694 |
|
|
|
487,365 |
|
Research, development, and engineering |
|
17,549 |
|
|
|
15,532 |
|
|
|
67,373 |
|
|
|
68,860 |
|
General, administrative, and other related costs |
|
53,029 |
|
|
|
52,483 |
|
|
|
203,461 |
|
|
|
195,726 |
|
Depreciation and amortization |
|
59,971 |
|
|
|
69,631 |
|
|
|
211,916 |
|
|
|
236,966 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
85,273 |
|
|
|
56,850 |
|
Total operating costs and expenses |
|
334,301 |
|
|
|
309,165 |
|
|
|
1,288,040 |
|
|
|
1,231,417 |
|
Income from operations |
|
78,522 |
|
|
|
80,720 |
|
|
|
113,648 |
|
|
|
132,611 |
|
Interest expense, net |
|
(6,391 |
) |
|
|
(2,251 |
) |
|
|
(13,988 |
) |
|
|
(20,031 |
) |
Loss on sale of businesses |
|
— |
|
|
|
— |
|
|
|
(3,780 |
) |
|
|
— |
|
Income (loss) on investments, net |
|
— |
|
|
|
1,065 |
|
|
|
(7,654 |
) |
|
|
(28,138 |
) |
Other income (loss), net |
|
2,438 |
|
|
|
(3,486 |
) |
|
|
4,968 |
|
|
|
(9,468 |
) |
Income before income tax expense and income (loss) from equity method investment |
|
74,569 |
|
|
|
76,048 |
|
|
|
93,194 |
|
|
|
74,974 |
|
Income tax expense |
|
(13,610 |
) |
|
|
(12,962 |
) |
|
|
(41,370 |
) |
|
|
(24,142 |
) |
Income (loss) from equity method investment, net of tax |
|
3,128 |
|
|
|
336 |
|
|
|
11,223 |
|
|
|
(9,329 |
) |
Net income |
$ |
64,087 |
|
|
$ |
63,422 |
|
|
$ |
63,047 |
|
|
$ |
41,503 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.51 |
|
|
$ |
1.39 |
|
|
$ |
1.42 |
|
|
$ |
0.89 |
|
Diluted |
$ |
1.43 |
|
|
$ |
1.29 |
|
|
$ |
1.42 |
|
|
$ |
0.89 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
42,577,188 |
|
|
|
45,772,689 |
|
|
|
44,457,071 |
|
|
|
46,400,941 |
|
Diluted |
|
46,690,090 |
|
|
|
50,985,086 |
|
|
|
44,519,693 |
|
|
|
46,464,261 |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED, IN THOUSANDS) |
|||||||
|
Years ended December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
63,047 |
|
|
$ |
41,503 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
211,916 |
|
|
|
236,966 |
|
Non-cash operating lease costs |
|
10,923 |
|
|
|
11,141 |
|
Share-based compensation |
|
40,915 |
|
|
|
31,920 |
|
Provision for credit losses on accounts receivable |
|
2,898 |
|
|
|
2,809 |
|
Deferred income taxes, net |
|
(18,822 |
) |
|
|
(30,017 |
) |
Loss on sale of businesses |
|
3,780 |
|
|
|
— |
|
Goodwill impairment |
|
85,273 |
|
|
|
56,850 |
|
Changes in fair value of contingent consideration |
|
— |
|
|
|
(200 |
) |
(Income) loss from equity method investments |
|
(11,223 |
) |
|
|
9,329 |
|
Loss on investment, net |
|
7,654 |
|
|
|
28,138 |
|
Other |
|
3,601 |
|
|
|
5,159 |
|
Decrease (increase) in: |
|
|
|
||||
Accounts receivable |
|
(153,121 |
) |
|
|
(35,371 |
) |
Prepaid expenses and other current assets |
|
(17,153 |
) |
|
|
(8,700 |
) |
Other assets |
|
11,367 |
|
|
|
(5,574 |
) |
Increase (decrease) in: |
|
|
|
||||
Accounts payable |
|
171,280 |
|
|
|
9,419 |
|
Deferred revenue |
|
5,043 |
|
|
|
(6,802 |
) |
Accrued liabilities and other current liabilities |
|
(27,063 |
) |
|
|
(26,608 |
) |
Net cash provided by operating activities |
|
390,315 |
|
|
|
319,962 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(106,635 |
) |
|
|
(108,729 |
) |
Acquisition of businesses, net of cash received |
|
(217,570 |
) |
|
|
(9,492 |
) |
Purchase of equity investments |
|
— |
|
|
|
(11,858 |
) |
Proceeds from sale of equity investments |
|
19,455 |
|
|
|
3,174 |
|
Proceeds from sale of businesses, net of cash divested |
|
7,860 |
|
|
|
— |
|
Other |
|
(565 |
) |
|
|
(503 |
) |
Net cash used in investing activities |
|
(297,455 |
) |
|
|
(127,408 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payment of debt |
|
(134,989 |
) |
|
|
— |
|
Debt extinguishment costs |
|
(277 |
) |
|
|
— |
|
Repurchase of common stock |
|
(185,181 |
) |
|
|
(108,527 |
) |
Issuance of common stock under employee stock purchase plan |
|
8,371 |
|
|
|
8,727 |
|
Deferred payments for acquisitions |
|
(7,842 |
) |
|
|
(15,241 |
) |
Other |
|
(1,076 |
) |
|
|
250 |
|
Net cash used in financing activities |
|
(320,994 |
) |
|
|
(114,791 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(3,598 |
) |
|
|
7,056 |
|
Net change in cash and cash equivalents |
|
(231,732 |
) |
|
|
84,819 |
|
Cash and cash equivalents at beginning of year |
|
737,612 |
|
|
|
652,793 |
|
Cash and cash equivalents at end of year |
$ |
505,880 |
|
|
$ |
737,612 |
|
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with
We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our recurring core business operating results or, in certain cases, may be non-cash in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, (2) certain measures are used to determine the amount of annual incentive compensation paid to our named executive officers, and (3) they are used by the analyst community to help them analyze the health of our business.
These non-GAAP financial measures are not measures presented in accordance with GAAP, and our use of these terms may vary from that of other companies, limiting their usefulness for comparison purposes. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.
Non-GAAP financial measures exclude the certain items listed below. We believe that excluding these items from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which exclude similar items. We believe that non-GAAP financial measures provide meaningful supplemental information regarding operational performance. We further believe these measures are useful to investors in that they allow for greater transparency of certain line items in the Company’s financial statements.
Adjusted EBITDA is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain items including, but not limited to:
- Interest expense, net. Interest expense is generated primarily from interest due on outstanding debt, partially offset by interest income generated from the interest earned on cash, cash equivalents, and investments;
- (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this (gain) loss does not represent recurring core business operating results of the Company;
- (Gain) loss on sale of business. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company;
- (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company;
- Other (income) loss, net. This income or expense relates to other non-operating items and does not represent recurring core business operating results of the Company;
- Income tax (benefit) expense. This benefit or expense depends on the pre-tax loss or income of the Company, statutory tax rates, tax regulations, and different tax rates in various jurisdictions in which the Company operates and which the Company does not have the control over;
- (Income) loss from equity method investments, net. This is a non-cash expense as it relates primarily to our investment in OCV Fund I, LP (the “Fund”). We believe that gain or loss resulting from our equity method investment does not represent core business operating results of the Company;
- Depreciation and amortization. This is a non-cash expense at it relates to use and associated reduction in value of certain assets including equipment, fixtures, and certain capitalized internal-used software and website development costs, and identifiable definite-lived intangible assets of the acquired businesses;
- Share-based compensation. This is a non-cash expense as it relates to awards granted under the various share-based incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base;
- Acquisition, integration, and other costs. Includes adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance, third-party debt modification costs and legal settlements. These expenses do not represent core business operating results of the Company;
- Disposal related costs. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company;
- Lease asset impairments and other charges. These expenses are incurred in connection with impaired right-of-use (“ROU”) assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and
- Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Total revenues.
Adjusted net income (loss) is defined as Net income (loss) with adjustments to reflect the addition or elimination of certain statement of operations items including, but not limited to:
-
Interest, net. This reflects the difference between the imputed and coupon interest expense associated with the
4.625% Senior Notes and a charge that the Company determined to be penalty interest associated with the1.75% Convertible Notes, offset in part by a certain interest income earned by the Company. These net expenses do not represent core business operating results of the Company;
- (Gain) loss on debt extinguishment, net. This is a non-cash expense that relates to extinguishments of long-term debt obligations. We believe this gain or loss does not represent recurring core business operating results of the Company;
- (Gain) loss on sale of business. This gain or loss relates to the sales of businesses and does not represent recurring core business operating results of the Company;
- (Gain) loss on investments, net. This item includes realized gains and losses, unrealized gains and losses, and impairment charges on debt and equity investments. The amount of gain or loss depends on the share price for investments with readily determinable fair value and on observable price changes for investments without a readily determinable fair value, and does not represent core business operating results of the Company;
- (Income) loss from equity method investments, net. This is a non-cash income or expense as it relates primarily to our investment in the OCV Fund. We believe that gains or losses resulting from our equity method investment do not represent core business operating results of the Company;
- Amortization. Includes the amortization of patents and intangible assets that we acquired. This is a non-cash expense as it primarily relates to identifiable definite-lived intangible assets of the acquired businesses. We believe that acquired intangible assets represent cost incurred by the acquiree to build value prior to the acquisition and the amortization of this cost does not represent core business operating results of the Company;
- Share-based compensation. This is a non-cash expense as it relates to awards granted under the various incentive plans of the Company. We view the economic cost of share-based awards to be the dilution to our share base;
- Acquisition, integration, and other costs. Includes adjustments to contingent consideration, lease terminations, retention bonuses, other acquisition-specific items, and other costs, such as severance, third-party debt modification costs and legal settlements. These expenses do not represent core business operating results of the Company;
- Disposal related costs. These are expenses associated with the disposal of certain businesses that do not represent core business operating results of the Company;
- Lease asset impairments and other charges. These expenses are incurred in connection with impaired ROU assets of the Company. Associated expenses are comprised of insurance, utility, and other charges related to assets that are no longer in use, and partially offset by the sublease income earned. These expenses do not represent core business operating results of the Company; and
- Goodwill impairment. This is a non-cash expense that is recorded when the carrying value of the reporting unit exceeds its fair value and does not represent core business operating results of the Company.
Adjusted net income (loss) per diluted share is calculated by dividing Adjusted net income (loss) by the diluted weighted average shares of common stock outstanding excluding the effect of convertible debt dilution.
Free cash flow is defined as Net cash provided by operating activities, less purchases of property and equipment, plus changes in contingent consideration (if any).
Adjusted effective tax rate is calculated based upon the GAAP effective tax rate with adjustments for the tax applicable to non-GAAP adjustments to Net income (loss), generally based upon the effective marginal tax rate of each adjustment.
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||
The following table sets forth a reconciliation of Net income to Adjusted EBITDA: |
|||||||||||||||
|
Three months ended December 31, |
|
Years ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
$ |
64,087 |
|
|
$ |
63,422 |
|
|
$ |
63,047 |
|
|
$ |
41,503 |
|
Interest expense, net |
|
6,391 |
|
|
|
2,251 |
|
|
|
13,988 |
|
|
|
20,031 |
|
Loss on sale of businesses |
|
— |
|
|
|
— |
|
|
|
3,780 |
|
|
|
— |
|
(Income) loss on investment, net |
|
— |
|
|
|
(1,065 |
) |
|
|
7,654 |
|
|
|
28,138 |
|
Other (income) loss, net |
|
(2,438 |
) |
|
|
3,486 |
|
|
|
(4,968 |
) |
|
|
9,468 |
|
Income tax expense |
|
13,610 |
|
|
|
12,962 |
|
|
|
41,370 |
|
|
|
24,142 |
|
(Income) loss from equity method investments, net |
|
(3,128 |
) |
|
|
(336 |
) |
|
|
(11,223 |
) |
|
|
7,829 |
|
Depreciation and amortization |
|
59,971 |
|
|
|
69,633 |
|
|
|
211,916 |
|
|
|
236,966 |
|
Share-based compensation |
|
10,282 |
|
|
|
7,527 |
|
|
|
40,915 |
|
|
|
31,920 |
|
Acquisition, integration, and other costs |
|
23,386 |
|
|
|
9,649 |
|
|
|
40,194 |
|
|
|
21,000 |
|
Disposal related costs |
|
(350 |
) |
|
|
375 |
|
|
|
201 |
|
|
|
2,217 |
|
Lease asset impairments and other charges |
|
(9 |
) |
|
|
(338 |
) |
|
|
1,361 |
|
|
|
2,245 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
85,273 |
|
|
|
56,850 |
|
Adjusted EBITDA |
$ |
171,802 |
|
|
$ |
167,566 |
|
|
$ |
493,508 |
|
|
$ |
482,309 |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
The following table sets forth Revenues and a reconciliation of Income (loss) from operations to Adjusted EBITDA by segment: |
|||||||||||||||||||||||||||
|
Three months ended December 31, 2024 |
||||||||||||||||||||||||||
|
Technology &
|
|
Gaming &
|
|
Health &
|
|
Connectivity |
|
Cybersecurity
|
|
Corporate (1) |
|
Total |
||||||||||||||
Revenues |
$ |
132,922 |
|
|
$ |
50,941 |
|
$ |
105,671 |
|
$ |
54,248 |
|
$ |
69,041 |
|
$ |
— |
|
|
$ |
412,823 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from operations |
$ |
22,245 |
|
|
$ |
20,244 |
|
$ |
27,058 |
|
$ |
17,500 |
|
$ |
9,095 |
|
$ |
(17,620 |
) |
|
$ |
78,522 |
|
||||
Depreciation and amortization |
|
25,313 |
|
|
|
2,869 |
|
|
13,849 |
|
|
9,397 |
|
|
8,505 |
|
|
38 |
|
|
|
59,971 |
|
||||
Share-based compensation |
|
1,164 |
|
|
|
190 |
|
|
1,411 |
|
|
638 |
|
|
1,097 |
|
|
5,782 |
|
|
|
10,282 |
|
||||
Acquisition, integration, and other costs |
|
9,710 |
|
|
|
1,323 |
|
|
4,509 |
|
|
1,987 |
|
|
3,587 |
|
|
2,270 |
|
|
|
23,386 |
|
||||
Disposal related costs |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(350 |
) |
|
|
(350 |
) |
||||
Lease asset impairments and other charges |
|
(179 |
) |
|
|
94 |
|
|
— |
|
|
— |
|
|
76 |
|
|
— |
|
|
|
(9 |
) |
||||
Goodwill impairment |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
||||
Adjusted EBITDA |
$ |
58,253 |
|
|
$ |
24,720 |
|
$ |
46,827 |
|
$ |
29,522 |
|
$ |
22,360 |
|
$ |
(9,880 |
) |
|
$ |
171,802 |
|
||||
|
Three months ended December 31, 2023 |
||||||||||||||||||||||||||
|
Technology &
|
|
Gaming &
|
|
Health &
|
|
Connectivity |
|
|
Cybersecurity
|
|
Corporate (1) |
|
Total |
|||||||||||||
Revenues |
$ |
105,222 |
|
|
$ |
49,230 |
|
$ |
106,449 |
|
$ |
57,038 |
|
$ |
71,946 |
|
$ |
— |
|
|
$ |
389,885 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from operations |
$ |
25,621 |
|
|
$ |
22,147 |
|
$ |
24,169 |
|
$ |
17,281 |
|
$ |
5,430 |
|
$ |
(13,928 |
) |
|
$ |
80,720 |
|
||||
Depreciation and amortization |
|
19,569 |
|
|
|
2,067 |
|
|
18,074 |
|
|
11,456 |
|
|
18,457 |
|
|
10 |
|
|
|
69,633 |
|
||||
Share-based compensation |
|
1,001 |
|
|
|
80 |
|
|
1,136 |
|
|
419 |
|
|
932 |
|
|
3,959 |
|
|
|
7,527 |
|
||||
Acquisition, integration, and other costs |
|
4,114 |
|
|
|
551 |
|
|
3,421 |
|
|
1,109 |
|
|
420 |
|
|
34 |
|
|
|
9,649 |
|
||||
Disposal related costs |
|
180 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
195 |
|
|
|
375 |
|
||||
Lease asset impairments and other charges |
|
(663 |
) |
|
|
— |
|
|
34 |
|
|
— |
|
|
206 |
|
|
85 |
|
|
|
(338 |
) |
||||
Adjusted EBITDA |
$ |
49,822 |
|
|
$ |
24,845 |
|
$ |
46,834 |
|
$ |
30,265 |
|
$ |
25,445 |
|
$ |
(9,645 |
) |
|
$ |
167,566 |
|
||||
_______________________ Figures above are net of inter-segment revenues and operating costs and expenses. |
||
(1) |
Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment. |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||||||||||
|
Year ended December 31, 2024 |
||||||||||||||||||||||||||
|
Technology &
|
|
Gaming &
|
|
Health &
|
|
Connectivity |
|
Cybersecurity
|
|
Corporate (1) |
|
Total |
||||||||||||||
Revenues |
$ |
361,882 |
|
|
$ |
180,276 |
|
$ |
362,408 |
|
$ |
213,620 |
|
|
$ |
283,502 |
|
$ |
— |
|
|
$ |
1,401,688 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income from operations |
$ |
(71,072 |
) |
|
$ |
54,001 |
|
$ |
67,207 |
|
$ |
79,374 |
|
|
$ |
54,961 |
|
$ |
(70,823 |
) |
|
$ |
113,648 |
||||
Depreciation and amortization |
|
83,424 |
|
|
|
10,733 |
|
|
52,766 |
|
|
31,882 |
|
|
|
33,025 |
|
|
86 |
|
|
|
211,916 |
||||
Share-based compensation |
|
5,014 |
|
|
|
1,070 |
|
|
5,604 |
|
|
2,658 |
|
|
|
4,631 |
|
|
21,938 |
|
|
|
40,915 |
||||
Acquisition, integration, and other costs |
|
18,554 |
|
|
|
2,727 |
|
|
9,788 |
|
|
(3,823 |
) |
|
|
5,395 |
|
|
7,553 |
|
|
|
40,194 |
||||
Disposal related costs |
|
(24 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
20 |
|
|
205 |
|
|
|
201 |
||||
Lease asset impairments and other charges |
|
223 |
|
|
|
93 |
|
|
15 |
|
|
— |
|
|
|
756 |
|
|
274 |
|
|
|
1,361 |
||||
Goodwill impairment |
|
85,273 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
85,273 |
||||
Adjusted EBITDA |
$ |
121,392 |
|
|
$ |
68,624 |
|
$ |
135,380 |
|
$ |
110,091 |
|
|
$ |
98,788 |
|
$ |
(40,767 |
) |
|
$ |
493,508 |
||||
|
Year ended December 31, 2023 |
||||||||||||||||||||||||||
|
Technology &
|
|
Gaming &
|
|
Health &
|
|
Connectivity |
|
Cybersecurity
|
|
Corporate (1) |
|
Total |
||||||||||||||
Revenues |
$ |
330,557 |
|
|
$ |
168,821 |
|
$ |
361,923 |
|
$ |
211,518 |
|
$ |
291,209 |
|
$ |
— |
|
|
$ |
1,364,028 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Loss) income from operations |
$ |
(50,498 |
) |
|
$ |
57,299 |
|
$ |
63,575 |
|
$ |
70,591 |
|
$ |
43,210 |
|
$ |
(51,566 |
) |
|
$ |
132,611 |
|
||||
Income from equity method investment, net |
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,500 |
) |
|
|
(1,500 |
) |
||||
Depreciation and amortization |
|
83,271 |
|
|
|
10,368 |
|
|
59,870 |
|
|
31,793 |
|
|
52,618 |
|
|
(954 |
) |
|
|
236,966 |
|
||||
Share-based compensation |
|
4,941 |
|
|
|
758 |
|
|
4,843 |
|
|
2,014 |
|
|
4,186 |
|
|
15,178 |
|
|
|
31,920 |
|
||||
Acquisition, integration, and other costs |
|
4,452 |
|
|
|
2,441 |
|
|
10,004 |
|
|
2,820 |
|
|
887 |
|
|
396 |
|
|
|
21,000 |
|
||||
Disposal related costs |
|
633 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
202 |
|
|
1,382 |
|
|
|
2,217 |
|
||||
Lease asset impairments and other charges |
|
1,019 |
|
|
|
— |
|
|
510 |
|
|
— |
|
|
471 |
|
|
245 |
|
|
|
2,245 |
|
||||
Goodwill impairment |
|
56,850 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
56,850 |
|
||||
Adjusted EBITDA |
$ |
100,668 |
|
|
$ |
70,866 |
|
$ |
138,802 |
|
$ |
107,218 |
|
$ |
101,574 |
|
$ |
(36,819 |
) |
|
$ |
482,309 |
|
||||
_______________________
|
||
(1) |
Corporate includes certain unallocated overhead costs that were historically presented within the Digital Media reportable segment. |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) |
|||||||||||||||
|
|||||||||||||||
The following tables set forth a reconciliation of Net income to Adjusted net income with adjustments presented on after-tax basis: |
|||||||||||||||
|
Three months ended December 31, |
||||||||||||||
|
|
2024 |
|
|
Per diluted
|
|
|
2023 |
|
|
Per diluted
|
||||
Net income |
$ |
64,087 |
|
|
$ |
1.43 |
|
|
$ |
63,422 |
|
|
$ |
1.29 |
|
Interest, net |
|
60 |
|
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
Loss on sale of business |
|
— |
|
|
|
— |
|
|
|
276 |
|
|
|
0.01 |
|
Loss (income) on investments, net |
|
942 |
|
|
|
0.02 |
|
|
|
(775 |
) |
|
|
(0.02 |
) |
Income from equity method investments, net |
|
(3,128 |
) |
|
|
(0.07 |
) |
|
|
(336 |
) |
|
|
(0.01 |
) |
Amortization |
|
25,040 |
|
|
|
0.59 |
|
|
|
31,105 |
|
|
|
0.68 |
|
Share-based compensation |
|
5,178 |
|
|
|
0.12 |
|
|
|
6,289 |
|
|
|
0.14 |
|
Acquisition, integration, and other costs |
|
18,265 |
|
|
|
0.43 |
|
|
|
7,011 |
|
|
|
0.15 |
|
Disposal related costs |
|
(262 |
) |
|
|
(0.01 |
) |
|
|
238 |
|
|
|
0.01 |
|
Lease asset impairments and other charges |
|
7 |
|
|
|
— |
|
|
|
(224 |
) |
|
|
— |
|
Dilutive effect of the convertible debt |
|
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.08 |
|
Adjusted net income |
$ |
110,189 |
|
|
$ |
2.58 |
|
|
$ |
106,986 |
|
|
$ |
2.33 |
|
|
Years ended December 31, |
||||||||||||||
|
|
2024 |
|
|
Per diluted
|
|
2023 |
|
Per diluted
|
||||||
Net income |
$ |
63,047 |
|
|
$ |
1.42 |
|
$ |
41,503 |
|
$ |
0.89 |
|||
Interest, net |
|
132 |
|
|
|
— |
|
|
5,881 |
|
|
0.13 |
|||
Loss on sale of business |
|
103 |
|
|
|
— |
|
|
3,797 |
|
|
0.08 |
|||
Loss on investments, net |
|
8,019 |
|
|
|
0.18 |
|
|
21,103 |
|
|
0.45 |
|||
(Income) loss from equity method investments, net |
|
(11,223 |
) |
|
|
(0.25 |
) |
|
8,204 |
|
|
0.18 |
|||
Amortization |
|
87,052 |
|
|
|
1.96 |
|
|
106,593 |
|
|
2.30 |
|||
Share-based compensation |
|
31,013 |
|
|
|
0.70 |
|
|
27,100 |
|
|
0.58 |
|||
Acquisition, integration, and other costs |
|
29,805 |
|
|
|
0.67 |
|
|
13,498 |
|
|
0.29 |
|||
Disposal related costs |
|
195 |
|
|
|
— |
|
|
1,538 |
|
|
0.03 |
|||
Lease asset impairments and other charges |
|
1,045 |
|
|
|
0.02 |
|
|
1,295 |
|
|
0.04 |
|||
Goodwill impairment |
|
85,273 |
|
|
|
1.92 |
|
|
56,850 |
|
|
1.22 |
|||
Adjusted net income |
$ |
294,461 |
|
|
$ |
6.62 |
|
$ |
287,362 |
|
$ |
6.19 |
|||
_______________________ |
|
* |
The reconciliation of Net income per diluted share to Adjusted net income per diluted share may not foot since each is calculated independently. |
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||
The following are the adjustments to certain statement of operations items used to derive Adjusted net income, which we believe provide useful information about our operating results and enhance the overall understanding of past financial performance and future prospects of the Company. |
||||||||||||||||||||||||||||||||||||||||||||
|
Three months ended December 31, 2024 |
|||||||||||||||||||||||||||||||||||||||||||
|
GAAP amount |
Adjustments |
Adjusted non-GAAP amount |
|||||||||||||||||||||||||||||||||||||||||
|
Interest, net |
(Gain) loss on sale of business |
(Gain) loss on investments, net |
(Income) loss from equity method investments, net |
Amortization |
Share-based compensation |
Acquisition, integration, and other costs |
Disposal related costs |
Lease asset impairments and other charges |
Goodwill impairment |
||||||||||||||||||||||||||||||||||
Direct costs |
$ |
(53,242 |
) |
$ |
— |
|
$ |
— |
$ |
— |
$ |
— |
|
$ |
— |
|
$ |
57 |
|
$ |
425 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
$ |
(52,760 |
) |
|||||||||||
Sales and marketing |
$ |
(150,510 |
) |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
891 |
|
|
13,366 |
|
|
— |
|
|
— |
|
|
— |
$ |
(136,253 |
) |
|||||||||||
Research, development, and engineering |
$ |
(17,549 |
) |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
735 |
|
|
3,926 |
|
|
— |
|
|
— |
|
|
— |
$ |
(12,888 |
) |
|||||||||||
General, administrative, and other related costs |
$ |
(53,029 |
) |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
8,599 |
|
|
5,669 |
|
|
(350 |
) |
|
(9 |
) |
|
— |
$ |
(39,120 |
) |
|||||||||||
Depreciation and amortization |
$ |
(59,971 |
) |
|
— |
|
|
— |
|
— |
|
— |
|
|
34,965 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(25,006 |
) |
|||||||||||
Goodwill impairment |
$ |
— |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
|||||||||||
Interest expense, net |
$ |
(6,391 |
) |
|
80 |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(6,311 |
) |
|||||||||||
Other income, net |
$ |
2,438 |
|
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(237 |
) |
|
— |
|
|
— |
|
|
— |
$ |
2,201 |
|
|||||||||||
Income tax expense (1) |
$ |
(13,610 |
) |
|
(20 |
) |
|
— |
|
942 |
|
— |
|
|
(9,925 |
) |
|
(5,104 |
) |
|
(4,884 |
) |
|
88 |
|
|
16 |
|
|
— |
$ |
(32,497 |
) |
|||||||||||
Loss from equity method investment, net |
$ |
3,128 |
|
|
— |
|
|
— |
|
— |
|
(3,128 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
|||||||||||
Total non-GAAP adjustments |
|
$ |
60 |
|
$ |
— |
$ |
942 |
$ |
(3,128 |
) |
$ |
25,040 |
|
$ |
5,178 |
|
$ |
18,265 |
|
$ |
(262 |
) |
$ |
7 |
|
$ |
— |
|
|||||||||||||||
_______________________ |
||
(1) |
Adjusted effective tax rate was approximately |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Three months ended December 31, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||
|
GAAP amount |
Adjustments |
Adjusted non-GAAP amount |
||||||||||||||||||||||||||||||||||||||||||||
|
Interest, net |
(Gain) loss on sale of business |
(Gain) loss on investments, net |
(Income) loss from equity method investments, net |
Amortization |
Share-based compensation |
Acquisition, integration, and other costs |
Disposal related costs |
Lease asset impairments and other charges |
Goodwill impairment |
|||||||||||||||||||||||||||||||||||||
Direct costs |
$ |
(45,070 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
15 |
|
$ |
2,561 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
$ |
(42,494 |
) |
||||||||||||
Sales and marketing |
$ |
(126,449 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
392 |
|
|
1,668 |
|
|
— |
|
|
— |
|
|
— |
$ |
(124,389 |
) |
||||||||||||
Research, development, and engineering |
$ |
(15,532 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
660 |
|
|
177 |
|
|
— |
|
|
— |
|
|
— |
$ |
(14,695 |
) |
||||||||||||
General, administrative, and other related costs |
$ |
(52,483 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
6,460 |
|
|
5,243 |
|
|
375 |
|
|
(338 |
) |
|
— |
$ |
(40,743 |
) |
||||||||||||
Depreciation and amortization |
$ |
(69,631 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
44,991 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(24,640 |
) |
||||||||||||
Goodwill impairment |
$ |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
||||||||||||
Interest expense, net |
$ |
(2,251 |
) |
|
(11 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(2,262 |
) |
||||||||||||
Gain on investments, net |
$ |
1,065 |
|
|
— |
|
|
— |
|
|
(1,065 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
||||||||||||
Other loss, net |
$ |
(3,486 |
) |
|
— |
|
|
422 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
459 |
|
|
— |
|
|
— |
|
|
— |
$ |
(2,605 |
) |
||||||||||||||
Income tax expense (1) |
$ |
(12,962 |
) |
|
(9 |
) |
|
(146 |
) |
|
290 |
|
|
— |
|
|
(13,886 |
) |
|
(1,238 |
) |
|
(3,097 |
) |
|
(137 |
) |
|
114 |
|
|
— |
$ |
(31,071 |
) |
||||||||||||
Income from equity method investment, net |
$ |
336 |
|
|
— |
|
|
— |
|
|
— |
|
|
(336 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
||||||||||||
Total non-GAAP adjustments |
|
$ |
(20 |
) |
$ |
276 |
|
$ |
(775 |
) |
$ |
(336 |
) |
$ |
31,105 |
|
$ |
6,289 |
|
$ |
7,011 |
|
$ |
238 |
|
$ |
(224 |
) |
$ |
— |
|
||||||||||||||||
_______________________ |
||
(1) |
|
Adjusted effective tax rate was approximately |
|
|
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31, 2024 |
||||||||||||||||||||||||||||||||||||||||||||||
|
GAAP amount |
Adjustments |
Adjusted non-GAAP amount |
||||||||||||||||||||||||||||||||||||||||||||
|
Interest, net |
(Gain) loss on sale of business |
(Gain) loss on investments, net |
(Income) loss from equity method investments, net |
Amortization |
Share-based compensation |
Acquisition, integration, and other costs |
Disposal related costs |
Lease asset impairments and other charges |
Goodwill impairment |
|||||||||||||||||||||||||||||||||||||
Direct costs |
$ |
(200,323 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|
$ |
248 |
|
$ |
760 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
$ |
(199,315 |
) |
|||||||||||||
Sales and marketing |
$ |
(519,694 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
3,756 |
|
|
19,072 |
|
|
— |
|
|
— |
|
|
— |
$ |
(496,866 |
) |
|||||||||||||
Research, development, and engineering |
$ |
(67,373 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
3,665 |
|
|
6,516 |
|
|
40 |
|
|
— |
|
|
— |
$ |
(57,152 |
) |
|||||||||||||
General, administrative, and other related costs |
$ |
(203,461 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
33,246 |
|
|
13,846 |
|
|
161 |
|
|
1,361 |
|
|
— |
$ |
(154,847 |
) |
|||||||||||||
Depreciation and amortization |
$ |
(211,916 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
117,748 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(94,168 |
) |
|||||||||||||
Goodwill impairment |
$ |
(85,273 |
) |
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
85,273 |
$ |
— |
|
|||||||||||||
Interest expense, net |
$ |
(13,988 |
) |
|
176 |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(13,812 |
) |
|||||||||||||
Loss on sale of business |
$ |
(3,780 |
) |
|
— |
|
|
3,780 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
|||||||||||||
Loss on investments, net |
$ |
(7,654 |
) |
|
— |
|
|
— |
|
|
7,654 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
|||||||||||||
Other income (loss), net |
$ |
4,968 |
|
|
— |
|
|
(4,903 |
) |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
(774 |
) |
|
— |
|
|
— |
|
|
— |
$ |
(709 |
) |
|||||||||||||
Income tax expense (1) |
$ |
(41,370 |
) |
|
(44 |
) |
|
1,226 |
|
|
365 |
|
— |
|
|
(30,696 |
) |
|
(9,902 |
) |
|
(9,615 |
) |
|
(6 |
) |
|
(316 |
) |
|
— |
$ |
(90,358 |
) |
|||||||||||||
Income from equity method investment, net |
$ |
11,223 |
|
|
— |
|
|
— |
|
|
— |
|
(11,223 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
|||||||||||||
Total non-GAAP adjustments |
|
$ |
132 |
|
$ |
103 |
|
$ |
8,019 |
$ |
(11,223 |
) |
$ |
87,052 |
|
$ |
31,013 |
|
$ |
29,805 |
|
$ |
195 |
|
$ |
1,045 |
|
$ |
85,273 |
|
|||||||||||||||||
_______________________ |
||
(1) |
|
Adjusted effective tax rate was approximately |
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Year ended December 31, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||
|
GAAP amount |
Adjustments |
Adjusted non-GAAP amount |
||||||||||||||||||||||||||||||||||||||||||||
|
Interest, net |
(Gain) loss on sale of business |
(Gain) loss on investments, net |
(Income) loss from equity method investments, net |
Amortization |
Share-based compensation |
Acquisition, integration, and other costs |
Disposal related costs |
Lease asset impairments and other charges |
Goodwill impairment |
|||||||||||||||||||||||||||||||||||||
Direct costs |
$ |
(185,650 |
) |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
262 |
|
$ |
2,752 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
$ |
(182,636 |
) |
||||||||||||
Sales and marketing |
$ |
(487,365 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,686 |
|
|
4,796 |
|
|
4 |
|
|
— |
|
|
— |
$ |
(479,879 |
) |
||||||||||||
Research, development, and engineering |
$ |
(68,860 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,245 |
|
|
712 |
|
|
3 |
|
|
— |
|
|
— |
$ |
(64,900 |
) |
||||||||||||
General, administrative, and other related costs |
$ |
(195,726 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,500 |
) |
|
— |
|
|
25,727 |
|
|
12,740 |
|
|
2,210 |
|
|
2,245 |
|
|
— |
$ |
(154,304 |
) |
||||||||||||
Depreciation and amortization |
$ |
(236,966 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
145,571 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(91,395 |
) |
||||||||||||
Goodwill impairment |
$ |
(56,850 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
56,850 |
$ |
— |
|
||||||||||||
Interest expense, net |
$ |
(20,031 |
) |
|
7,797 |
|
|
(538 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
(12,772 |
) |
||||||||||||
Loss on investments, net |
$ |
(28,138 |
) |
|
— |
|
|
— |
|
|
28,138 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
||||||||||||
Other loss, net |
$ |
(9,468 |
) |
|
— |
|
|
5,655 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
459 |
|
|
— |
|
|
— |
|
|
— |
$ |
(3,354 |
) |
||||||||||||
Income tax expense (1) |
$ |
(24,142 |
) |
|
(1,916 |
) |
|
(1,320 |
) |
|
(7,035 |
) |
|
375 |
|
|
(38,978 |
) |
|
(4,820 |
) |
|
(7,961 |
) |
|
(679 |
) |
|
(950 |
) |
|
— |
$ |
(87,426 |
) |
||||||||||||
Loss from equity method investment, net |
$ |
(9,329 |
) |
|
— |
|
|
— |
|
|
— |
|
|
9,329 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
$ |
— |
|
||||||||||||
Total non-GAAP adjustments |
|
$ |
5,881 |
|
$ |
3,797 |
|
$ |
21,103 |
|
$ |
8,204 |
|
$ |
106,593 |
|
$ |
27,100 |
|
$ |
13,498 |
|
$ |
1,538 |
|
$ |
1,295 |
|
$ |
56,850 |
|
||||||||||||||||
_______________________ |
||
(1) |
Adjusted effective tax rate was approximately |
|
ZIFF DAVIS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED, IN THOUSANDS) |
|||||||||||||||||||
|
|||||||||||||||||||
The following tables set forth a reconciliation of Net cash provided by operating activities to Free cash flow: |
|||||||||||||||||||
2024 |
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
YTD |
||||||||||
Net cash provided by operating activities |
$ |
75,558 |
|
|
$ |
50,564 |
|
|
$ |
105,960 |
|
|
$ |
158,233 |
|
|
$ |
390,315 |
|
Less: Purchases of property and equipment |
|
(28,129 |
) |
|
|
(25,504 |
) |
|
|
(25,843 |
) |
|
|
(27,159 |
) |
|
|
(106,635 |
) |
Free cash flow |
$ |
47,429 |
|
|
$ |
25,060 |
|
|
$ |
80,117 |
|
|
$ |
131,074 |
|
|
$ |
283,680 |
|
2023 |
Q1 |
Q2 |
Q3 |
Q4 |
YTD |
||||||||||||||
Net cash provided by operating activities |
$ |
115,307 |
|
$ |
39,728 |
|
$ |
72,808 |
|
$ |
92,119 |
|
$ |
319,962 |
|
||||
Less: Purchases of property and equipment |
|
(30,017 |
) |
|
(25,233 |
) |
|
(27,226 |
) |
|
(26,253 |
) |
|
(108,729 |
) |
||||
Free cash flow |
$ |
85,290 |
|
$ |
14,495 |
|
$ |
45,582 |
|
$ |
65,866 |
|
$ |
211,233 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250224073132/en/
Alan Steier
Investor Relations
Ziff Davis, Inc.
investor@ziffdavis.com
Rebecca Wright
Corporate Communications
Ziff Davis, Inc.
press@ziffdavis.com
Source: Ziff Davis, Inc.
FAQ
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